We’ve seen this playbook before – Energy Analyst on gov’t GHȼ1 fuel levy

Benjamin Nsiah is the Executive Director of the Centre for Environment and Sustainable Energy. He criticized the government's new GH₵1 fuel levy. He called it regressive, uncreative, and harmful.

Nsiah spoke to CITI News about this issue. He said, “This approach is not only tired but unfair.” He noted that Ghanaians have seen similar measures before. Previous levies like the Energy Sector Levies Act (ESLA) did not solve underlying problems.

He emphasized that it’s not about collecting more money. It’s about managing existing funds better.

Nsiah also challenged the Minister's claim that consumers won't feel burdened. He stated that consumers have carried this burden for years. Without reform, this trend will continue. “The problem is not revenue; it is management,” he concluded.

His comments followed Parliament's approval of the Energy Sector Levy Amendment Bill 2025. This bill imposes a GH₵1 increase on every litre of fuel. Reports suggest this measure could generate GH₵5.7 billion in revenue. The funds aim to reduce energy sector debts and address power supply issues known as dumsor.

Ato Forson spoke in Parliament about the energy sector's financial needs. He mentioned at least $3.7 billion is required to clear current debts. In 2025, an additional $1.2 billion will be needed for essential fuel procurement.

Forson warned that without resolving these debts, the power sector risks collapse. The government plans to increase pump prices for diesel and petrol but claims consumers won’t pay extra due to cedi performance.

However, the Minority Caucus found the levy inappropriate and staged a walkout during approval.